Alibaba shares are getting slammed after this weekend's brutal report in Barron's
- 8h
Alibaba shares are down 4% in early trading on Monday after this weekend's brutal report in Barron's.
At below $62 per share, Alibaba is at a new all-time low.
The latest leg lower comes after Jonathan Laing in Barron's this weekend published a 3,000-word takedown of the Chinese e-commerce site that questioned the integrity of its financial statements, the company's growth trajectory, and argued that Alibaba shares could fall 50% from current levels.
Alibaba, of course, disagreed, and on Sunday followed with a lengthy response, going through Laing's argument on an almost point-by-point basis, adding that the story, "lacks three key ingredients — integrity, professionalism, and fair play."
In a note to clients on Monday, SunTrust analyst Bob Peck — who has a "Buy" rating and $100 price target on shares of Alibaba — said that while the Barron's report "raised several fair issues...we think several other negative points were overstated/misconstrued."
Of course, whether or not you think Barron's is right or wrong, ahead of this report Alibaba shares have been absolutely brutal in 2015, falling more than 35% year-to-date through Friday.
This Friday will mark the 1-year anniversary of Alibaba's public debut when shares priced at $68 and rose 38% in their first day of trading. After topping out near $120 per share in November 2014, shares are now near $64.
Here's the ugly year-to-date chart.
Google Finance
At below $62 per share, Alibaba is at a new all-time low.
The latest leg lower comes after Jonathan Laing in Barron's this weekend published a 3,000-word takedown of the Chinese e-commerce site that questioned the integrity of its financial statements, the company's growth trajectory, and argued that Alibaba shares could fall 50% from current levels.
Alibaba, of course, disagreed, and on Sunday followed with a lengthy response, going through Laing's argument on an almost point-by-point basis, adding that the story, "lacks three key ingredients — integrity, professionalism, and fair play."
In a note to clients on Monday, SunTrust analyst Bob Peck — who has a "Buy" rating and $100 price target on shares of Alibaba — said that while the Barron's report "raised several fair issues...we think several other negative points were overstated/misconstrued."
Of course, whether or not you think Barron's is right or wrong, ahead of this report Alibaba shares have been absolutely brutal in 2015, falling more than 35% year-to-date through Friday.
This Friday will mark the 1-year anniversary of Alibaba's public debut when shares priced at $68 and rose 38% in their first day of trading. After topping out near $120 per share in November 2014, shares are now near $64.
Here's the ugly year-to-date chart.
Google Finance
No comments:
Post a Comment